YPFB, the Bolvian state-owned oil company, and Brazil’s Petrobras have signed an addendum to their gas sales contract, which will enable the supply of 2.2m cubic meters/day of gas to the 480 MW Mario Covas thermal plant, located in Cuiabá in the Brazilian state of Mato Grosso.

“The contract relates to a total of 31m cubic metres a day in gas exports to Brazil, with the deliveries to the Cuiaba plant now taken out of that total.

According to IHS Global Insight, this contract will allow reactivation of the plant, which has been been inactive since August 2007

In an earlier agreement, signed in late March, Empresa Produtora de Energia (EPE) and transferred control of the plant to Petrobras until end of 2012, as well as the responsibility for supplying it with fuel. EPE retains responsibility for the operation and maintenance of the plant,

The Mario Covas thermal plant had been expected to begin operation earlier this month but it has reportedly been delayed.

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